Lifelines for small businesses

SOUTH COUNTY — In the greatest economic challenge since the Great Depression, many small businesses have abandoned growth plans and concentrated on surviving. Those that master survival of the fittest benefit the community as well as themselves. Healthy businesses mean more jobs, more consumer choices and a sound tax base.

Accordingly, “Seven Steps for Small Business Survival” was the title of a presentation last week at the San Ysidro Chamber of Commerce. Speaking was Dan Biggs, past president of the South County Economic Development Corporation. Biggs, an engineering graduate of San Diego State University, owns a Web hosting company and a business selling party supplies via the Internet.

His seven survival steps:

Know your business operating costs. Many owners do not know their costs or how they compare to the norms. It is possible to negotiate new lease or equipment terms. His business has sharp volume swings so he discusses with employees whether they prefer flexible hours to layoffs in slow months.

Understand the recent changes of your customers. That is as simple as noting what isn't selling and who isn't coming back.

Assess the products and services you offer. Watch where stimulus dollars go to spot trends.

Evaluate changes you need to make in your offerings.

Adapt products and services to fit your customers' needs.

Expand your marketing to protect or enlarge your market share. Biggs increased his party supply marketing 12 times from the previous year. Amid the recession, his sales volume is up 25 percent. “You don't want to stop networking, you don't want to stop advertising.”

Set trigger points for decisions so you won't be too busy to make changes. Set specific triggers for decisions: “If my sales decline 10 percent in the next 30 days, I will ... ”

“Don't be too proud to ask for help,” Biggs advises. In the South County, resources include South County Economic Development Corp. (sandiegosouth.com), Southwestern College's small business and international trade centers (sbditc.org) and the Service Corps of Retired Executives (score.org).

“Above all,” Biggs advises, “keep a positive outlook. This economic downturn will not last forever.”